EXECUTIVE SUMMARY

This project presents a strategic initiative for an Austrian start-up called NOSI GmbH, which specializes in AI-based odor detection. The company has developed a groundbreaking sensor based on biological polymers that can recognize and digitize odors. The aim of the project was to explore the potential of NOSI's technology, given the company's current position and limited project resources, the project team conducted an in-depth market analysis giving NOSI a strategic direction.

Goal

Building on the technical feasibility of NOSI's digital odor recognition, the project team was able to work on a suitable go-to-market strategy. Behind the intended market entry lies a revolutionary technical success - the aim of this project work was to explore potential application areas, preferred market segments and lead-user behavior. In the midst of limited resources and the initial uncertainty of a start-up, the project aimed to make it easier to decide which strategy would be best for market entry through our analyses. From opportunities and risks, strategies have been derived for different time stages.  NOSI's group-internal vision was to be implemented step by step. The project group was involved to ensure that young visionaries, GenZ purchasing behavior and an entrepreneurial, innovative perspective were involved in these decisions. The core of the visionary goal was to reduce uncertain scenarios, long-term unpredictability and medium-term risk to a minimum.

Methodology

In order to develop a market entry strategy for NOSI’s AI-powered scent detection technology, the research combined both secondary and primary data collection to evaluate potential applications, user preferences, and adoption barriers.

Secondary research involved analysis of academic literature, industry reports and competitor analysis. The findings revealed a fragmented but rapidly growing smart home market, where the most existing devices focuse on isolated air quality and safety parameters. The competitor analysis revealed that only few competitors offer integrated scent-based solutions, positioning Nosi’s e-nose technology as a unique opportunity to address unmet needs for example in mold detection, fire safety, and hygiene monitoring.

Primary research was conducted through 70 qualitative interviews and a quantitative survey with 311 participants. The results indicated potential customer’s needs, preferences and expectations such as strong interest for discreet, stationary smart home devices, particularly for air quality, fire and mold detection. Trust emerged as a key factor, with users favoring well-known companies and medical backing. Additionally, a one-time purchase model was generally preferred.

These insights provided a comprehensive understanding of the market and consumer expectations, which has been serving as a foundation for the strategic recommendation. The combined findings highlighted both, the customer’s expectations and trust factors critical for adaptation.

Results

Throughout the course of the project, findings indicated the necessity of redirecting NOSI’s initial market entry strategy. While early-stage exploration focused on wearable applications for the company’s AI-powered scent detection technology, primary research conducted before the midterm presentation revealed significant user concerns. These included discomfort with constant wearability, visibility of the device, and strong associations with medical use. Additionally, the wearable market was found to be highly saturated and competitive, presenting substantial barriers for a start-up with limited resources.

ased on these insights, the strategy has been shifted toward the development of a stationary smart home device. Interview data showed that users perceived such devices as more trustworthy, practical, and non-intrusive—particularly when placed in familiar domestic environments such as bathrooms or bedrooms. Passive monitoring was viewed favorably, especially for applications such as air quality tracking, mold detection, or fire prevention. These qualitative insights were later confirmed through a quantitative survey of 311 participants. The results demonstrated a clear preference for a modular, stationary product. Respondents expressed interest in safety- and hygiene-related features and indicated a strong preference for a one-time purchase model, with an acceptable price range between €150 and €300. Trust, scientific credibility, and data privacy emerged as critical factors influencing adoption. While there has been openness to future health monitoring features, users were emphasizing the need for evidence-based functionality and discretion in design.

Collectively, the research supported a phased go-to-market strategy. It is recommended that NOSI launch a smart home device focused on basic safety and environmental monitoring. This would allow a gradual user onboarding, further data collection, and brand positioning—providing a strong foundation for future expansion into medical applications and wearable technologies.

Cooperation Partner

• NOSI GmbH
  Frauentorgasse 72-74, 3430 Tulln
  Austria
  https://nosi.tech/

Contact Person

• Patrik Aspermair, PhD - patrik@nosi.tech

Student Team

• Julius BRÜCKL

• Nicolas FRITZ

• Sofia IRIBOZOVA

• Titus JUNG

• Stefani KALDRAMOVA

• Azra ÖZDIL

• Elena POPOVA

• Robin PUTNAI

Project Manager

• Mag. Benjamin Monsorno

• Dr. Dorothee Horvath